DRAFT Perfromance Work Statement.pdf

Performance Work Statement (PWS)

Indirect Cost Rate Services Blank Purchase

Agreement (BPA)

04/13/2024

Vision Statement

1 General Information

1.1 Scope of Work

1.2 Background

1.3 Constraints

1.4 Non-Personal Services

1.5 Period of Performance

1.6 Place of Performance

1.7 Hours of Operation

1.8 Special Qualifications

1.9 Post Award/Kickoff Conference

1.10 Status Meetings

1.11 Contractor Travel

1.12 Transition In

1.13 Transition Out

2 Definitions and Acronyms

2.1 Definitions

2.2 Acronyms

3 Government-Furnished Property and Services

3.1 Government Services

3.2 Facilities

3.3 Equipment

3.4 Materials and Information

3.5 Quality Assurance (QA)

4 Contractor-Furnished Items and Services

4.1 Facilities

4.2 Equipment

4.3 Materials

4.4 Contractor Responsibilities

4.5 Contractor Personnel

4.6 Identification of Contractor Employees

5 Specific Tasks

5.1 Scope Area 1: Auditing and Evaluation Services

5.2 Scope Area 1: Indirect Cost Services

5.3 Scope Area 3: Project Management

6 Deliverables

6.1 Quality Control Plan

6.2 Acceptance Criteria

7 Related Documents

8 Performance Requirements Summary

Vision Statement

To provide for the issuance of an Indirect Cost Rate Agreement on behalf of the US Department of Housing and Urban Development

1 General Information

1.1 Scope of Work

The Department of Housing and Urban Development (HUD) is seeking contractor services to provide auditing and evaluation services for procurement contracts and indirect cost rate services for grants.

The Contractor shall provide services for the following Scope Areas:

• Scope Area 1: Auditing and Evaluation Services for Procurement Contracts

• Scope Area 2: Indirect Cost Rate Services for Grants

• Scope Area 3: Program Management Support

Detailed descriptions of specific tasks are provided in Section 5 Specific Tasks and

Deliverables.

1.2 Background

Congress mandated that HUD fund and create standards for housing counseling services provided by government and non-government organizations. After the 2008 housing crisis, certain statutes strengthened this mandate by creating the HUD, which has vigorously acted to support counseling and education. This support is generated through grants issued to these same organizations. HUD works with grantees to support implementation of an indirect cost structure to help ensure indirect costs are allocated fairly s and grantees are reimbursed for these costs by the government.

1.3 Constraints

The services identified in this PWS will adhere to the rules, regulations, laws, standards, and conventions identified by HUD as well as within the Federal Government. Constraints include the following:

• Federal Acquisition Regulations (FAR) 31.203 https://www.acquisition.gov/far/31.203

• Federal Acquisition Regulations (FAR) 42.7 https://www.acquisition.gov/far/subpart-42.7

• CFR Part 200.414 and 200.415 https://www.ecfr.gov/current/title-2/subtitle-A/chapter- II/part-200/subpart-E/subject-group-ECFRd93f2a98b1f6455#200.412

• CFR Title 2, Subtitle A, Chapter II, Part 200 “Cost Principles” o https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-E

• CFR Title 2, Subtitle A, Chapter II, Part 200, Appendix IV to Part 200 “Indirect (F&A) Costs

Identification and Assignment, and Rate Determination for Nonprofit Organizations” o https://www.ecfr.gov/current/title-2/part-200/appendix-Appendix IV to Part 200

• CFR Title 2, Subtitle A, Chapter II, Part 200, Appendix V to Part 200 “State/Local

Governmentwide Central Service Cost Allocation Plans” o https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/appendix-

Appendix%20V%20to%20Part%20200

• CFR Title 2, Subtitle A, Chapter II, Part 200, Appendix VII to Part 200 “States and Local

Government and Indian Tribe Indirect Cost Proposals o https://www.ecfr.gov/current/title-2/part-200/appendix-Appendix VII to Part 200

1.4 Non-Personal Services

The Government will neither supervise Contractor employees nor control the method by which the Contractor performs the required tasks. Under no circumstances shall the Government assign tasks to, or prepare work schedules for, individual Contractor employees. It shall be the responsibility of the Contractor to manage its employees and to guard against any actions that are of the nature of personal services or give the perception of personal services.

If the Contractor believes that any actions constitute, or are perceived to constitute personal services, it shall be the Contractor's responsibility to notify the Contracting Officer (CO) immediately. These services shall not be used to perform work of a policy, decision making, or management nature, i.e., inherently Government functions. All decisions relative to programs supported by the Contactor shall be the sole responsibility of the Government.

1.5 Period of Performance

The period of performance shall be a base of 12 months with four 12-month options.

https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-E https://www.ecfr.gov/current/title-2/part-200/appendix-Appendix https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/appendix-Appendix%20V%20to%20Part%20200 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/appendix-Appendix%20V%20to%20Part%20200 https://www.ecfr.gov/current/title-2/part-200/appendix-Appendix

1.6 Place of Performance

The place of performance shall be contractor site.

1.7 Hours of Operation

The Contractor is responsible for providing services between the hours of 8:00 am – 4:30 pm ET, Monday through Friday except for Federal holidays or when the Government facility is closed due to local or national emergencies, administrative closing, or similar Government directed facility closings. The Government reserves the right to change hours of operation or restrict contractor access. Government agencies will not be available during scheduled holidays, inclement weather, weekends, and after duty hours.

The Contractor shall maintain an adequate workforce for the uninterrupted performance of all tasks defined within the contract when the Government facility is not closed for the above reasons. When hiring personnel, the Contractor shall keep in mind that the stability and continuity of the workforce is essential.

1.8 Special Qualifications

TBD

1.9 Post Award/Kickoff Conference

The Contractor shall attend any post award conference convened by the contracting activity or contract administration office in accordance with FAR Subpart 42.5 and HUD Acquisition Regulation (HUDAR) clause 2452.237-79 - Post Award Conference.

1.10 Status Meetings

The Contracting Officer, Contracting Officers Representative (COR), and other Government personnel, as appropriate, may meet periodically with the Contractor to also review Contractor performance, requirement status, etc. At these meetings, the Contracting Officer will apprise the Contractor of how the Government views the Contractor's performance or progress of the requirement. The Contractor will apprise the Government of problems, if any, being experienced. Appropriate action shall be taken to resolve outstanding issues. These meetings shall be at no additional cost to the Government. Post Award Conference and subsequent meetings may be held via teleconference at the Contracting Officer's discretion.

1.11 Contractor Travel

Prior to travel, the Contractor shall coordinate with and receive Government authorization from the COR for all travel. Reimbursement of travel costs will be in accordance with the Federal Travel Regulation and in accordance with FAR 31.205-46.

1.12 Transition In

To be determined at the call order level.

1.13 Transition Out

To be determined at the call order level.

2 Definitions and Acronyms

2.1 Definitions

Business Day - Every official day of the week which are days between and including Monday to Friday. This does not include federal holidays and weekends.

Calendar Day - Any day of the week.

Contractor - A supplier or vendor awarded a contract to provide specific supplies or service to the Government. The term used in this contract refers to the prime.

Contracting Officer (CO) - A person with authority to enter into, administer, and/or terminate contracts and make related determinations and findings on behalf of the Government. Note: the only individual who can legally bind the Government.

Contracting Officer's Representative (COR) - An employee of the U.S. Government appointed by the Contracting Officer to perform contract administration activities in regard to technical issues. This individual has authority to provide technical direction to the Contractor as long as direction is within the scope of the contract, does not constitute a change, and has no funding implications. This individual does NOT have authority to change the terms and conditions of the contract.

Defective Service - A service output that does not meet the standard of performance associated with the Performance Work Statement.

Deliverable - Anything that can be physically delivered but may include non-manufactured things such as meeting minutes or reports.

Government Furnished Property (GFP) - Property in the possession of, or directly acquired by, the Government and subsequently furnished to the Contractor for performance of a contract.

Government-furnished property includes, but is not limited to, spares and property furnished for repair, maintenance, overhaul, or modification. Government-furnished property also includes contractor-acquired property if the contractor-acquired property is deliverable under a cost contract when accepted by the Government for continued use under the contract.

Final indirect cost rate means the indirect cost rate established and agreed upon by the Government and the contractor as not subject to change. It is usually established after the close of the contractor’s fiscal year (unless the parties decide upon a different period) to which it applies. For cost-reimbursement research and development contracts with educational institutions, it may be predetermined; that is, established for a future period on the basis of cost experience with similar contracts, together with supporting data.

Indirect cost means any cost not directly identified with a single final cost objective, but identified with two or more final cost objectives or with at least one intermediate cost objective.

Indirect cost rate means the percentage or dollar factor that expresses the ratio of indirect expense incurred in a given period to direct labor cost, manufacturing cost, or another appropriate base for the same period (see also "final indirect cost rate").

Performance Requirements Summary (PRS) - A listing of the performance requirements under the contract that are to be evaluated by the Government on a regular basis, performance indicators for these requirements, performance standards for these requirement and surveillance methods to be used to determine if performance standards are met.

Performance Standard - The Contractor's performance level required by the Government.

Performance Work Statement (PWS) - A statement of work for performance-based acquisitions that describes the required results in clear, specific, and objective terms with measurable outcomes.

Quality Assurance (QA) - Policies and procedures adopted by the Government to ensure that supplies and services acquired under Government contracts conform to the contracts quality requirements.

Quality Assurance Surveillance Plan (QASP) - A plan describing how the agency will survey, observe, test, sample, evaluate, and document the Contractor's performance in meeting critical performance standards identified in the contract.

Quality Control (QC) - All necessary measures taken by the Contractor to assure that the quality of an end product of service shall meet contract requirements.

Subcontractor - Any person, other than the prime Contractor, who offers to furnish or furnishes any supplies, material, equipment, or services of any kind under a prime contract or a subcontract entered into in connection with such prime contract, and any person who offers to furnish or furnishes general supplies to the prime contractor or a higher tier subcontractor. The

Government does not have a contract with a subcontractor.

Work Week - Monday through Friday, unless specified otherwise.

2.2 Acronyms

AQL - Acceptable Quality Level

CFO or OCFO - Office of the Chief Financial Officer of HUD

CFR - Code of Federal Regulations

CIO or OCIO - Office of the Chief Information Officer of HUD

CO - Contracting Officer

COR - Contracting Officer's Representative

COTS - Commercial Off-the-Shelf

CPO - Office of the Chief Procurement Officer of HUD

EST - Eastern Standard Time (U.S.)

ETC - Estimate to Completion

GAO - Government Accountability Office

HUD - U.S. Department of Housing and Urban Development

HUDAR - HUD Acquisition Regulation

IG or OIG - Inspector General (Office of)

IT - Information Technology

IV&V - Independent Validation and Verification

OCPO - Office of the Chief Procurement Officer

OIG - Office of Inspector General

OMB - Office of Management and Budget

PL Public Law

PM - Project Manager

POC - Point of Contact

PPM - Project Planning and Management

QA - Quality Assurance

QASP - Quality Assurance Surveillance Plan

QCP - Quality Control Plan

SCOR - Subordinate Contracting Officer’s Representative

SF - Standard Form

TBD - To be determined

U.S.C - United States Code

3 Government-Furnished Property and Services

The Contractor shall ensure accurate control and accountability of all Government-Furnished Property in accordance with the terms and conditions of this contract. The Government will furnish, at no cost to the Contractor, the GFP shown below.

3.1 Government Services

To Be Determined

3.2 Facilities

N/A

3.3 Equipment

N/A

3.4 Materials and Information

See HUDAR 2452.227-70, Government Information.

The Government shall provide the following materials and information: To Be Determined

3.5 Quality Assurance (QA)

The Government shall evaluate the Contractor's performance under this contract in accordance with the Quality Assurance Surveillance Plan. This plan is primarily focused on what the Government must do to ensure that the Contractor has performed in accordance with the performance standards. It defines how the performance standards will be applied, the frequency of surveillance, and the minimum acceptable quality level.

4 Contractor-Furnished Items and Services

The Contractor shall furnish, all facilities, equipment, and supplies required to perform the work under this contract that are not listed under Government-Furnished Property and Services.

4.1 Facilities

N/A

4.2 Equipment

N/A

4.3 Materials

The Contractor shall furnish (To Be Determined)

4.4 Contractor Responsibilities

The Contractor shall only conduct business with designated Government personnel listed as points of contact (POCs). Names of authorized personnel shall be provided to the Contractor by the Government, in writing, and updated as necessary throughout the contract period of performance.

U.S. Government records, copies of original results and reports, verified original data, corrected data, and corrected supporting final reports which are maintained by the Contractor remain the property of the U.S. Government. These files/results must be surrendered to the COR.

4.5 Contractor Personnel

See HUDAR clause 2452.237-70 - Key Personnel in the Key Personnel section of the contract.

4.6 Identification of Contractor Employees

All Contractor/subcontractor personnel shall wear company picture identification badges as to distinguish themselves from Government employees. When conversing with Government personnel during business meetings, over the telephone, or via electronic mail, Contractor/subcontractor personnel shall identify themselves as such to avoid situations arising where sensitive topics might be better discussed solely between Government employees.

Contractors/subcontractors shall identify themselves on any attendance sheet or any coordination documents they may review. Electronic mail signature blocks shall identify their company affiliation. Where practicable, Contractor/subcontractors occupying collocated space with their Government program customer shall identify their workspace area with their name and company affiliation, or at a minimum, "Contractor" after name.

5 Specific Tasks

5.1 Scope Area 1: Auditing and Evaluation Services for Procurement

Contracts

5.1.1 Pre-award Surveys

The Contractor shall conduct pre-award surveys to evaluate a prospective contractor's ability to perform a proposed contract. Surveys may cover technical and financial capability, accounting system and other considerations.

5.1.2 Proposal Audits

The Contractor shall audit proposals to determine the allowability, allocability and reasonableness of proposed/budgeted costs and/or direct and indirect costs. The Contractor shall conduct a detailed review of significant direct and indirect elements, such as material, labor, overhead, general, and administrative expenses, facilities, special tools, packaging and packing, transportation and other costs which extend over the life of the contract.

5.1.3 Statement of Cost Evaluations

The Contractor shall perform evaluations of statements of costs to be incurred (cost estimates) or statements of cost actually incurred and incurred cost audits.

5.2 Scope Area 1: Indirect Cost Rate Services for Grants

5.2.1 Reviewing Indirect Cost

The Contractor shall:

• Review grantees’ indirect cost rate proposal for completeness, accuracy, and consistency.

• Review grantee’ indirect cost rate proposal data for allowability, reasonableness, and compliance with Uniform Guidance in 2 CFR Part 200, Subpart E.

• Based the contractor’s review, recommend to the government the indirect cost rate for the grantee.

• Review and recommend the cost allocation plan to the government.

Each recommendation shall include:

1) Recommended rate(s) and information directly related to the use of rate(s), such as type of rate, effective period, and direct cost base;

2) Treatment of fringe benefits as either direct or indirect costs;

3) General Terms and Conditions, such as rate limitations, accounting changes or rate applicability; and

4) Additional information (if necessary) that may be needed by the HUD.

The recommendations shall be annotated in the Analysis Recommendation Report (see 5.2.2).

5.2.1.1 Indirect Cost Proposal Checklist

The Contractor shall use the following checklist when reviewing indirect cost proposals:

Determine that the applicable cost principles were followed.

• Review the organization chart for a visual picture of the flow of responsibility, identification of areas of common costs, and the location of those areas in which federally funded activity exists.

• Perform a mathematical verification of the proposal.

• Determine that the proposal reconciles with the supporting audit, official budget, or financial statements.

• Review the financial statements and audit report for any indication of activities which may have been omitted from the indirect cost proposal, i.e., the omission of restricted fund costs or the existence of an affiliated organization receiving supportive service from the parent organization.

• Determine that the itemized costs in the indirect cost pool pertain to functions that are supportive of all direct activity.

• Determine that costs that are statutorily unallowable, or for reasons of non-allocability, have been eliminated from the indirect cost pool. Determine whether these unallowable or non-allocable items should be added to the distribution/allocation base.

• Determine that "pass-through" funds have been excluded from the base.

• Review and analyze direct costs for the determination of:

a. Consistency in charging specific items of cost.

b. The selection of an appropriate base for allocating indirect costs.

• Review the contract/grant budget and payments, or contractor/grantee records, for a determination of: (if deemed feasible under the circumstances)

a. The direct funding of indirect costs.

b. Any limitations placed upon the full recovery of indirect costs, i.e. ceiling rates or amounts.

c. Total Federal funds involved.

The Contractor shall include checklist findings and recommendations in the Analysis

Recommendation Report.

5.2.2 Analysis Recommendation Report

The Contractor shall submit an analysis recommendation report one business day after completing the review and checklist.

Performance Standards

a) Standard: submit analysis recommendation report one business day after completing review and checklist.

AQL: zero deviation

Deliverables

A001 Analysis Recommendation Report

5.3 Scope Area 3: Project Management

5.3.1 Monthly Status Report

The Contractor shall submit a monthly status report and shall contain the following:

• Consolidation of indirect cost proposal reviews completed for the month.

• Ongoing reviews continuing in the next month.

• Start and end dates of indirect cost proposal reviews.

• Number of indirect cost proposal reviews for the month.

• Any indirect cost proposal reviews that have risk or issues.

The monthly status report shall be submitted by 2pm on third day of the following month.

Performance Standards

a) Standard: monthly status report shall be submitted by 2pm on third day of the following month.

AQL: Submitted by 4pm Deliverables

A002 Monthly Status Report

6 Deliverables

The Contractor shall complete all work and submit all deliverables as specified herein. The Government reserves the right to make changes to delivery dates.

Number Name Frequency Quantity

A001 Analysis Recommendation Report After proposal review

A002 Monthly Status Report Monthly 1

6.1 Quality Control Plan

The Contractor shall establish and maintain a complete quality control program that shall ensure services are performed in accordance with this contract. The Contractor shall develop and implement procedures to identify, prevent, and ensure non-reoccurrence of defective services.

The Contractor's quality control program is the means by which they assure themselves that their work complies with the requirements of the contract. The Contractor shall provide the associated Quality Control Plan to the Government as directed.

The Contractor shall develop, maintain, enforce, and document a Quality Control Plan (QCP).

The QCP shall ensure the Government receives the level of quality that is consistent with the requirements specified in this contract. The QCP shall be sufficiently detailed to provide the

Contractor's methodology for identifying and recruiting qualified personnel. The QCP shall also provide the Contractor's methodology for resolving problems identified by the Government during reviews conducted in accordance with its Quality Assurance Surveillance Plan (QASP).

The QCP shall also provide the Contractor's methodology for establishing an internal feedback system for support personnel and for resolving problems identified by that feedback system.

The QCP shall demonstrate and validate that the services or deliverables to be provided under the contract are completed with a level of quality that meets the minimum performance threshold established in the Government's QASP. The QCP shall address Quality Management

Approach, Quality Assurance, Quality Control, and Quality Standards.

The Contractor's QCP shall be delivered to the COR within 30 days after contract award (or with the Contractor's proposal if it is an evaluation factor). The QCP shall be submitted to the COR within (insert number of days) business days when changes are made thereafter.

6.2 Acceptance Criteria

Each contract deliverable shall meet the following inspection and acceptance criteria in additional to any Inspection and Acceptance contract terms and conditions:

• Deliverables shall incorporate all HUD comments;

• All deliverables shall be provided to the designated COR first in draft format for review and comment unless specified otherwise by the COR;

• Subsequent final reports shall incorporate the comments, changes, edits, and concerns expressed to the Contractor by the COR. All deliverables shall be grammatically correct, reflect comprehensive research, incorporate complete analysis, and address HUD concerns;

• Acceptance of all deliverables shall be provided in writing by the COR within 5 business days. Upon written notification by the COR, the Contractor shall make any required revisions and resubmit the documentation within 5 business days, and/or submit a final draft within two (2) business days. The COR will inform the Contractor of the final draft.

• The Contractor shall provide any further refinement needed for documents required by the COR;

• All deliverables must be in compliance with Section 508 requirements as established by the Section 508 Access Board and other HUD guidelines; and

• In the event the Government deems a deliverable as unacceptable and the deliverable is rejected, the Contractor shall rework the deliverable at no cost increase to the contract.

In the event the Government deems the services are unacceptable and rejects the service, the Contractor shall take action necessary to correct deficiencies and bring the service into compliance with the acceptability standards of the contract.

7 Related Documents

The Contractor shall abide by all applicable regulations, publications, manuals, policies, and procedures in the performance of this contract.

8 Performance Requirements Summary

The summary chart below lists the contract's primary requirements, the associated performance standards, the expected target performance, and the methods of surveillance. While some contract requirements may not be listed in the chart below, requirements not appearing on the PRS chart do not negate the Contractor's obligation to perform all requirements as specified in the contract. Additionally, HUD reserves all rights and remedies under the provisions and clauses of the contract when performance of any contract requirement, whether or not listed below, is unacceptable.

HUD will develop a Quality Assurance Surveillance Plan to be used to provide contract oversight. In conjunction with the Contractor's Quality Control Plan and various other methods of assessing performance, the COR and PM may perform on-site reviews and/or other types of verification to determine that the specified target performance requirements have been met.

Regular review of Contractor performance is critical to the overall success of the contract. On a monthly basis, the COR will evaluate the quality of the product or services.

Performance Requirement Summary (PRS)

Statements Standards/AQLs Incentive/Remedy

5.1 Scope Area 1:

Auditing and Evaluation Services

TBD TBD

5.1.1 Pre-award Surveys TBD TBD

5.1.2 Proposal Audits TBD TBD

5.1.3 Statement of Cost

Evaluations

TBD TBD

5.2 Scope Area 1:

Indirect Cost Services

TBD TBD

5.2.1 Reviewing Indirect

Cost

TBD TBD

5.2.1.1 Indirect Cost

Proposal Checklist

TBD TBD

5.2.2 Analysis

Recommendation Report

TBD TBD

5.3 Scope Area 3:

Project Management

5.3.1 Monthly Status

Report

a) monthly status report shall be submitted by 2pm on third day of the following month.

AQL: Submitted by 4pm

2% deduction of invoice CLIN for each report not submitted on time